Privatization and quality: Evidence from elderly care in Sweden

Mats A. Bergman, Per Johansson, Sofia Lundberg and Giancarlo Spagnolo

Journal of Health Economics, 2016, vol. 49, issue C, 109-119

Abstract: Non-contractible quality dimensions are at risk of degradation when the provision of public services is privatized. However, privatization may increase quality by fostering performance-improving innovation, particularly if combined with increased competition. We assemble a large data set on elderly care services in Sweden between 1990 and 2009 and estimate how opening to private provision affected mortality rates – an important and not easily contractible quality dimension – using a difference-in-difference-in-difference approach. The results indicate that privatization and the associated increase in competition significantly improved non-contractible quality as measured by mortality rates.

Keywords: Competition; Incomplete contracts; Mortality; Outsourcing; Public procurement (search for similar items in EconPapers)
JEL-codes: H57 I18 L33 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: Privatization and Quality: Evidence from Elderly Care in Sweden (2014)
Working Paper: Privatization and Quality: Evidence from Elderly Care in Sweden (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:49:y:2016:i:c:p:109-119

DOI: 10.1016/j.jhealeco.2016.06.010

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